Competitive facility location and design problem |
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| Authors: | Robert Aboolian Oded Berman Dmitry Krass |
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| Affiliation: | 1. College of Business Administration, California State University San Marcos, San Marcos, CA 92096, USA;2. Rotman School of Management, University of Toronto, 105 St. George Street, Toronto, Ont., Canada M5S 3E6 |
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| Abstract: | We develop a spatial interaction model that seeks to simultaneously optimize location and design decisions for a set of new facilities. The facilities compete for customer demand with pre-existing competitive facilities and with each other. The customer demand is assumed to be elastic, expanding as the utility of the service offered by the facilities increases. Increases in the utility can be achieved by increasing the number of facilities, design improvements, or locating facilities closer to the customer. |
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| Keywords: | Competitive facility location models Facility design problems Non-linear integer programming Greedy heuristics Worst-case bounds Approximation |
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